Sydney considered for iron ore facility

A proposed iron ore pelletization plant could be built on the site of the former Sydney Steel plant. (STAFF / File)

SYDNEY — Chances are increasing that Sydney could become home to an iron ore pelletization plant.

The possibility of becoming International Iron Beneficiation Group Ltd.’s location for a multimillion-dollar plant, with the potential for hundreds of workers in this job-starved region, is a dream.

The announcement Monday means it could be closer to reality.

“We all know what new, good jobs would mean to Cape Breton, but we’re only going to move forward if it’s right for the environment and for the community,” deputy premier Frank Corbett said Monday in a news release.

The release was issued to announce $2 million worth of feasibility studies will be undertaken by a company affiliated with OAS Severstal, a Russian-owned steel and mining company.

The company is searching for a location to turn super-fine iron ore into pellets for use in the steel industry.

Corbett announced the province has put up $400,000 toward the cost of the studies and the federal government, by way of Enterprise Cape Breton Corp., will chip in $300,000.

John Lynn, head of the federal Crown corporation, said the project has the potential to transform the region’s economy.

“The company’s interest in the Port of Sydney is directly related to the dredging of the harbour channel,” said Lynn.

He said the dredged harbour “accentuates the island’s strategic advantage in terms of access to markets, proximity to natural resources and availability of land for commercial activity.”

The feasibility studies are just the start of a long process, said Sean Lewis, a International Iron Beneficiation Group spokesman.

At least five North America locations are under consideration and feasibility studies will be undertaken on some, if not all, of those.

“This really is the start of the process to see if it is a viable location and there are many details that go into it,” Lewis said in a telephone interview Monday, referring to the possible Cape Breton site.

He said the kinds of considerations include what infrastructure is available and access to roads and water transportation.